Ok I know a lot of you fellow Canadians know more about this than I do so I am throwing the question out there to you.
DS1 turns 18 in November. He is going into Gr 12. If I understand correctly, you can open a TFSA once you turn 18.
My question is this, do I /we need to open one up for him and pop, say, $1000 in it to keep the contribution room growing for him? Or does he automatically get the $5000 a year contribution room even if he doesn't open one til he is an adult, working?
PS Don't forget to entery Jeremy's give away contest. Check out the details at Modest Money!
Tuesday, Nice weekend!
1 day ago
6 comments:
Thanks for mentioning my giveaway Jolie.
I'm not sure about the TFSA question, but I don't think it would matter if he contributes or not. It probably doesn't even matter if he's working or not. Once he is old enough to file taxes his contribution limits should start building up. I haven't used mine yet and I know the limit has been increasing.
No. The room is there whether he contributes to it or not. Say he wants to open it at age 22 then he would have 4 years x 5000 = 20 grand contribution room..
Great. Thanks guys. If it needed to be done I would dig to find the $, but since I don't HAVE to, then it can wait until he has an income, which will be awhile should things go well in his Junior A hockey 'career' over the next 3 years.
Contribution room is forever =) man I love the TFSA
Yep, you add to it when you like. Contribution room just keeps growing.
Your contribution room keeps adding. DS1 must open it himself but even if he does not this year, the contribution room will stay with him. You cannot open any account on behalf of him. And DS1 cannot "hold" money for you either. Hope that helps.
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